Anthropic's Fable 5 is Back! SpaceX Builds AI Device artwork

Anthropic's Fable 5 is Back! SpaceX Builds AI Device

AI Update

July 1, 2026

In this episode, we cover Anthropic bringing back Fable 5 and what its return means for developers and enterprise AI users. We also look at SpaceX’s new AI device initiative and how it could expand the company’s ambitions beyond rockets, satellites, and connectivity.
Speakers: Jaden Schaefer
**Jaden Schaefer** (0:00)
Anthropic's Claude Fable 5 is back along with Mythos 5 The US has lifted export controls on it, and SpaceX is showing investors a handset-like AI device prototype. Meta is planning a cloud business where they're essentially gonna resell AI compute, just like SpaceX copying their playbook. A company called BioShocking has created a jailbreak attack on six different AI browsers, everything from OpenAI to Anthropic to Gemini, and it has convinced them that two plus two equals five. There's some reasons why this is problematic, I'll get into them. CloudFlare is also gonna block mixed-use AI crawlers by default, and that's gonna start in September this year. Google is bringing Gemini, Spark, Agent 2, Mac. They're targeting essentially Cloud Desktop and Copilot, and there's a lot of beef that they're having with Anthropic over this. The majority of you guys leave amazing reviews on the show, but every once in a while, I get a one star, and I'm gonna be honest, these are some of my favorite reviews to read. I wanna read you one of my favorites I just got a month ago. It says, if you want a rehash of quote unquote real news with naive commentary by a tween, this will be perfect for you. That's from IHateNicknames99. Much appreciated. It is kinda funny because I actually get, if you search for my name, Jaden Schaefer, one of the top, like Google shows you the other things people search for, and one of the top things is Jaden Schaefer age that people search for. Guys, this one says I'm a tween, so just so you know, I am 30 years old with four children. I have a young face. But anyways, that was one of my favorite reviews. If you like the show, you don't think that it is a naive commentary rehash of fake news.
I would appreciate a review. We got to offset this one star. But in all seriousness, I appreciate all the incredible reviews you guys left. And if you haven't left one already, I would appreciate it. I might even read it on the show. Let's get into our first story with Fable 5 The US Commerce Department is lifting export restrictions on Fable 5 And I think they actually announced this yesterday. Because of that, they've rolled it out today. I actually have it on my computer. And while we've been talking for the last couple hours, I actually had to go and scan through the entire codebase of one of my bigger projects. I have a really big project that is basically, I just use it internally for myself to help with all the marketing and everything I do with podcasting, as well as everything that I do for SEO. I have a new site which kind of goes along with this website, aichatdaily.com, and it uses AI and a bunch of other different sources to generate news articles about everything happening in AI and do deep dives on it. Now, it's a really beefy project. There's a lot going on there, and I'm thinking of turning it into a product anyway, so I had Fable 5 run through the whole thing. And if you have any sort of project that you've been working on, whether that's coding or whether that's just a big project that has a lot of moving parts, I would recommend using Fable 5 on it today. Up until July 7th, we have the ability to use Fable 5 for about 50% of all of your tokens. After that, I think it's going to get cut down. If you want to use Fable 5 for more than 50% of your, you know, Clawed Max tokens or whatever, you have to pay, you know, the API costs, so you're not going to be able to like totally max this thing out. So I would use it. You have one week from today to get as much usage out of it, and I would 100% do that. It's really smart at coding and understanding complex stuff, so run it through all of your systems, run it through all of your code bases. Today is the day to get it. That's just a PSA. Anthropic is actually blocked, so in order to get this thing put back online, because it was basically blocked over concerns that it was going to help foreign adversaries attack US infrastructure, power grids, banks, that kind of stuff. And so this all came from Amazon, who actually did a whole research project on a jailbreak that they found, and they showed this to the Treasury, and then, you know, it got blocked, and there was all this snafu about it.
In all of the drama that happened, Anthropic originally said, hey, look, we don't need to fix this issue. I think Amazon went to them first, and they didn't do anything, they went to the Treasury. And Anthropic said, hey, look, we don't need to fix this, because OpenAI has the same jailbreak as possible on OpenAI and Gemini. And so I'm not exactly sure what happened there, but Anthropic got Fable 5 pulled, and they've now fixed it. Apparently, with that jailbreak that Amazon discovered, they've now fixed it, so over 99% of cases, it actually is going to stop, and has guardrails stopping people using that jailbreak. They also have a dedicated internal team that now monitors jailbreak, reports 24-7, and Anthropic launched a hacker-1 bug-bounding program for security researchers. This is actually awesome, and I've seen a lot of bad PR from security researchers, not just with Anthropic, but with a lot of other models. I think Lovable had it for a while, where there would be big security breaches, vulnerabilities, issues, and the platforms are like, look, this isn't our fault because of XYZ reason. They would kick the can down the road, and yeah, just not a very good thing when we need to be pretty secure on a lot of this stuff. So happy that Anthropic has launched this. Mythos 5 has also returned to US users on June 26th. Fable 5 is now globally available without export licensing requirements.

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